PROPOSED PERMANENT RULEMAKING WITH AN EFFECTIVE DATE OF JULY 1, 01 In accordance with N.C.G.S. B-1.1(c), the Real Estate Commission ( Commission ) hereby gives notice that it has submitted to the Office of Administrative Hearings - Rules Review Commission for publication in the North Carolina Register the notice of text for proposed rule amendments under consideration. No federal certifications or fiscal notes are required for any of these proposed changes. The Notice of Text includes a summary that cites each rule affected and explains the reason for each proposed change. Changes to the proposed rule text are reflected by underscoring text that will be added and striking through text that will be deleted. A public hearing on the proposed rule text will be held at the Commission s office on Wednesday, February 1, 01, at :00 a.m. Members of the public may submit oral or written comments on any proposed rule(s) during the comment period by contacting the Commission s Rulemaking Coordinator as follows: Melissa A. Vuotto Rulemaking Coordinator North Carolina Real Estate Commission P.O. Box 00 Raleigh, NC 1 (1) -00 (telephone) (1) 1-0 (facsimile) public.comment@ncrec.gov Procedure for Subjecting a Proposed Rule to Legislative Review: If an objection is not resolved prior to the adoption of the rule, a person may also submit written objections to the Rules Review Commission ( RRC ). If the RRC receives written and signed objections in accordance with G.S. B-1.(b) from or more persons clearly requesting review by the legislature and the RRC approves the rule, the rule will become effective as provided in G.S. B-1.(b1). The RRC will receive written objections until :00 p.m. on the day following the day the RRC approves the rule. The RRC will receive those objections by mail, delivery service, hand delivery, or facsimile transmission. If you have any further questions concerning the submission of objections to the RRC, please call a RRC staff attorney at 1-1-000. - 1 -
NOTICE OF TEXT [Authority G.S. B-1.(c)] OAH USE ONLY VOLUME: ISSUE: CHECK APPROPRIATE BOX: Notice with a scheduled hearing Notice without a scheduled hearing Republication of text. Complete the following cite for the volume and issue of previous publication, as well as blocks 1 - and - 1. If a hearing is scheduled, complete block. Previous publication of text was published in Volume: Issue: 1. Rule-Making Agency: North Carolina Real Estate Commission. Link to agency website pursuant to G.S. B-1.1(c): www.ncrec.gov. Proposed Action -- Check the appropriate box(es) and list rule citation(s) beside proposed action: ADOPTION: READOPTION with substantive changes: READOPTION without substantive changes: AMENDMENT: 1 NCAC A.0,.0,.0,.00,.0,.00,.00,.0,.,., and.1; 1 NCAC B.0; 1 NCAC G.0; 1 NCAC H.0, and.00 REPEAL:. Proposed effective date: July 1, 01. Is a public hearing planned? Yes No If yes: February 1, 01 Public Hearing date: Public Hearing time: :00 a.m. Public Hearing Location: Navaho Dr Raleigh, NC 0. If no public hearing is scheduled, provide instructions on how to demand a public hearing: Notice of Text 000 1 /01
. Explain Reason For Proposed Rule(s): Please see attached 'Exhibit A.'. Procedure for Subjecting a Proposed Rule to Legislative Review: If an objection is not resolved prior to the adoption of the rule, a person may also submit written objections to the Rules Review Commission. If the Rules Review Commission receives written and signed objections in accordance with G.S. B-1.(b) from or more persons clearly requesting review by the legislature and the Rules Review Commission approves the rule, the rule will become effective as provided in G.S. B-1.(b1). The Commission will receive written objections until :00 p m. on the day following the day the Commission approves the rule. The Commission will receive those objections by mail, delivery service, hand delivery, or facsimile transmission. If you have any further questions concerning the submission of objections to the Commission, please call a Commission staff attorney at 1-1- 000. Rule(s) is automatically subject to legislative review. Cite statutory reference:. The person to whom written comments may be submitted on the proposed rule(s): Name: Melissa Vuotto Address: PO Box 00 Raleigh, NC 1-0 Phone (optional): Fax (optional): E-Mail (optional): public.comment@ncrec.gov. Comment Period Ends: March 1, 01. Fiscal impact (check all that apply). If this form contains rules that have different fiscal impacts, list the rule citations beside the appropriate impact. State funds affected Environmental permitting of DOT affected Analysis submitted to Board of Transportation Local funds affected Substantial economic impact ( $1,000,000) Approved by OSBM No fiscal note required by G.S. B-1. No fiscal note required by G.S. B-1.A(d)() 1. Rule-making Coordinator: 1. The Agency formally proposed the text of this rule(s) on Melissa Vuotto Date: December 1, 01 Address: PO Box 00 Raleigh, NC 1-0 Phone: 1--00 ext. 1 E-Mail: melissa@ncrec.gov Agency contact, if any: Madison Mackenzie Phone: 1--00, ext. 1 E-mail: madison@ncrec.gov Print Save Reset form 1. Signature of Agency Head* or Rule-making Coordinator: *If this function has been delegated (reassigned) pursuant to G.S. 1B-(a), submit a copy of the delegation with this form. Melissa Vuotto Typed Name: Title: Rulemaking Coordinator Notice of Text 000 1 /01
NOTICE OF TEXT EXHIBIT A 1 NCAC A.0 - Advertising To amend the rule in paragraph (a)(1) to clarify the text of the rule that a broker must include the name of the broker and the firm or sole proprietorship with which the broker is affiliated. 1 NCAC A.0 Delivery of Instruments To amend the rule in paragraph (a) to require every broker to deliver a copy of any written instruments to their customer or client within days of the document s execution. 1 NCAC A.0 Retention of Records To amend the rule to include a broker s duty to protect the security/confidentiality of consumer data in the broker s possession, including secure email, encryption, etc. and to require brokers to provide a copy of all transaction files to their firm within days of receipt. 1 NCAC A.00 Broker-in-Charge To amend the rule to (1) clarify the rule text; () remove the North Carolina GRI program as an exception to the Broker-in-Charge experience requirement; and () require nonresident brokers to complete the 1-hour BIC Course and BIC Update Course. 1 NCAC A.0 - Residential Property and Owner s Association Disclosure Statement To amend the rule to change Purchaser to Buyer. The purpose of this change is to make the rule match the word usage commonly used by brokers. To amend the rule to include a question that asks if a radon mitigation system is present in the home and to clarify whether the dwelling s sewage disposal system is permitted by the State. To amend the rule to separate the issue of deed restrictions and Property Owners Associations, since not all properties with deed restrictions are governed by a Property Owners Association and to include "Master Insurance" under services and amenities of a owners association. 1 NCAC A.00 License Renewal To amend the rule to remove the sentence that states a broker can renew by calling the Commission s offices in order to safeguard credit card information. The Commission no longer accepts payments over the telephone. 1 NCAC A.00 - Reinstatement To amend the rule in paragraph (a) to remove the fee associated with suspended licenses. To amend the rule in paragraph (b) to add language clarifying that criminal background checks will be conducted pursuant to a reinstatement application. To amend the rule to require persons requesting reinstatement after less than six months from expiration to disclose any criminal convictions or disciplinary actions by other occupational licensing boards, including any such offenses that occurred since the person s license expired or was revoked.
NCAC A.0 Licensing of Persons Licensed in Another Jurisdiction To amend the rule to include provisions for licensing military-trained applicants and their military spouses with temporary practice permits in compliance with G.S. B-1.1, as enacted in Section of S.L. 01-. 1 NCAC A. Continuing Education Requirement To amend the rule to clarify continuing education credit for a broker-in-charge or broker taking the General Update Course. This provision was previously located in 1 NCAC A.00. 1 NCAC A. Continuing Education for License Activation To amend the rule to require brokers on inactive status for more than two years to complete additional education prior to activating their license. 1 NCAC A.1 Continuing Education Required of Nonresident Licensees To amend the rule to eliminate the requirement of nonresident brokers to notify the Commission of affiliation with a North Carolina office. 1 NCAC B.0 Renewal of Time Share Registration To amend the rule to eliminate the notary requirement on the renewal form in order to proceed with electronic time share renewals. 1 NCAC G.0 Definitions To amend the rule to include additional definitions of terms. 1 NCAC H.0 Prelicensing and Postlicensing Roster Reporting To amend the rule to require schools to submit a Roster Report electronically within days following the course, instead of 0 days. 1 NCAC H.00 Renewal of Sponsor Approval To amend the rule to change a rule reference.
1 1 1 1 1 1 1 1 0 1 1 NCAC A.0 is proposed for amendment as follows: 1 NCAC A.0 ADVERTISING (a) Authority to Advertise. (1) A broker shall not advertise any brokerage service or the sale, purchase, exchange, rent, or lease of real estate for another or others without the consent of his or her broker-in-charge and without including in the advertisement the name of the broker or firm with whom the broker is associated. and the firm or sole proprietorship with which the broker is affiliated. () A broker shall not advertise or display a "for sale" or "for rent" sign on any real estate without the written consent of the owner or the owner's authorized agent. (b) Blind Ads. A broker shall not advertise the sale, purchase, exchange, rent, or lease of real estate for others in a manner indicating the offer to sell, purchase, exchange, rent, or lease is being made by the broker's principal only. Every such advertisement shall conspicuously indicate that it is the advertisement of a broker or brokerage firm and shall not be confined to publication of only a post office box number, telephone number, street address, internet web address, or e-mail address. (c) A person licensed as a limited nonresident commercial broker shall comply with the provisions of Rule. of this Subchapter in connection with all advertising concerning or relating to his or her status as a North Carolina broker. History Note: Authority G.S. A-(a1); A-(c); A-; Eff. February 1, 1; Readopted Eff. September 0, 1; Amended Eff. July 1, 01; July 1, 01; April 1, 01; July 1, 00; January 1, 00; April 1, 00; July 1, 00; October 1, 000; August 1, 1; April 1, 1; July 1, 1; February 1, 1. 1 of 1
1 1 1 1 1 1 1 1 0 1 1 NCAC A.0 is proposed for amendment as follows: 1 NCAC A.0 DELIVERY OF INSTRUMENTS (a) Except as provided in Paragraph (b) of this Rule, every broker shall deliver a copy of any written agency agreement, contract, offer, lease, rental agreement, option, or other related transaction document to their customer or client within five days three days of the document's execution. broker s receipt of the executed document. (b) A broker may be relieved of the duty to deliver copies of leases or rental agreements to a property owner pursuant to Paragraph (a) of this Rule if the broker: (1) obtains the prior written authority of the property owner to enter into and retain copies of leases or rental agreements on behalf of the property owner; () executes the lease or rental agreement on a pre-printed form, the material terms of which may not be changed by the broker without prior approval by the property owner, except as may be required by law; and () delivers to the property owner an accounting within days following the date of execution of the lease or rental agreement that identifies: (A) the leased property; (B) the name, phone number, and home address of each tenant; and (C) the rental rates and rents collected. (c) Paragraph (b) of this Rule notwithstanding, upon the request of a property owner, a broker shall deliver a copy of any lease or rental agreement within five days. History Note: Authority G.S. A-(c); Eff. February 1, 1; Readopted Eff. September 0, 1; Amended Eff. July 1, 01; July 1, 01; July 1, 00; July 1, 001; October 1, 000; May 1, ; July 1, 1; February 1, 1. 1 of 1
1 1 1 1 1 1 1 1 0 1 0 1 1 NCAC A.0 is proposed for amendment as follows: 1 NCAC A.0 RETENTION OF RECORDS AND CONFIDENTIALITY (a) Brokers shall retain records of all sales, rental, and other transactions conducted in such capacity, whether the transaction is pending, completed, or terminated prior to its successful conclusion. The broker shall retain records for three years after all funds held by the broker in connection with the transaction have been disbursed to the proper party or parties or the successful or unsuccessful conclusion of the transaction, whichever occurs later. However, if the broker's agency agreement is terminated prior to the conclusion of the transaction, the broker shall retain such records for three years after the termination of the agency agreement or the disbursement of all funds held by or paid to the broker in connection with the transaction, whichever occurs later. (b) Records shall include copies of the following: (1) contracts of sale; () written leases; () agency contracts; () options; () offers to purchase; () trust or escrow records; () earnest money receipts; () disclosure documents; () closing statements; () brokerage cooperation agreements; () declarations of affiliation; (1) broker price opinions and comparative market analyses prepared pursuant to G.S. A, Article, including any notes and supporting documentation; (1) sketches, calculations, photos, and other documentation used or relied upon to determine square footage; (1) advertising used to market a property; and (1) any other records pertaining to real estate transactions. (c) All records shall be made available for inspection and reproduction by the Commission or its authorized representatives without prior notice. (d) Brokers shall safeguard personal and confidential information and records stored or transmitted through computers, electronic mail, facsimile machines, telephones, telephone answering machines, and all other electronic or computer technology. (e) Brokers shall provide a copy of the written agency agreement, contract, offer, lease, rental agreement, option, or other related transaction document to the firm or sole proprietorship with which they are affiliated within three days of receipt. 1 of
History Note: Authority G.S. A-(c); Eff. February 1, 1; Readopted Eff. September 0, 1; Amended Eff. July 1, 01; July 1, 00; September 1, 00; August 1, 1; February 1, 1; February 1, 1; Temporary Amendment Eff. October 1, 01; Amended Eff. July 1, 01; April 1, 01. of
1 1 1 1 1 1 1 1 0 1 0 1 1 NCAC A.00 is proposed for amendment as follows: 1 NCAC A.00 BROKER-IN-CHARGE (a) When used in this Rule, the term: (1) "Office" means any place of business where acts are performed for which a real estate license is required or where monies received by a broker acting in a fiduciary capacity are handled or records for such trust monies are maintained; () "Principal Office" means the office so designated in the Commission's records by the qualifying broker of a licensed firm or the broker in charge of a sole proprietorship; and () "Branch Office" means any office in addition to the principal office of a broker which is operated in connection with the broker's real estate business. (b) Except as provided in Paragraphs (d) and (e) of this Rule, every real estate firm, including a sole proprietorship, shall have a broker designated by the Commission as provided in Paragraph (f) of this Rule to serve as the broker in charge at its principal office and a broker to serve as broker in charge at any branch office. No broker shall be broker in charge of more than one office at a time. No office of a firm shall have more than one designated broker in charge. (c) If a firm shares office space with one or more other firms, the same broker may serve as broker in charge of multiple firms at that location. All firms at that location having the same designated broker in charge shall maintain with the Commission as a delivery address the same delivery address as that of the single designated broker in charge. (d) A licensed real estate firm is not required to have a broker in charge if it: (1) has been organized for the sole purpose of receiving compensation for brokerage services furnished by its qualifying broker through another firm or broker; () is treated for tax purposes as a Subchapter S corporation by the United States Internal Revenue Service; () has no principal or branch office; and () has no licensed or unlicensed person associated with it other than its qualifying broker. (e) A broker who is a sole proprietor shall obtain the Commission's designation of himself or herself as a broker in charge if the broker engages in any transaction where the broker is required to deposit and maintain monies belonging to others in a trust account, engages in advertising or promoting his or her services as a broker in any manner, or has one or more other brokers affiliated with him or her in the real estate business. Maintenance of a trust or escrow account by a broker solely for holding residential tenant security deposits received by the broker on properties owned by the broker in compliance with G.S. 0 shall not, standing alone, subject the broker to the requirement to designate himself or herself as a broker in charge. (f) A broker desiring to be a broker in charge shall request in writing his or her designation as broker in charge by the Commission on a form provided by the Commission. The form shall include the broker's name, license number, firm affiliation, and a certification that he or she possesses the experience described in Subparagraph (g)() of this 1 of
1 1 1 1 1 1 1 1 0 1 0 1 Rule. Upon receipt of notice from the Commission that the broker has been designated as broker in charge, the broker shall assume the duties of broker in charge. (g) To qualify to become a broker in charge, a broker shall: (1) have a license on active status but not on provisional status; () possess at least two years of full time real estate brokerage experience or equivalent four years of part time real estate brokerage experience within the previous five years or real estate education, such as the completion of the North Carolina GRI program or other education with a subject matter relating to brokerage practice and the supervision of brokers, or experience in real estate transactions that the Commission finds equivalent to such experience, such as a licensed attorney with a practice that consisted primarily of handling real estate closing and related matters in North Carolina for three years immediately preceding application or full time, lawful experience selling new homes owned by a corporate homebuilder as a bonafide employee of the corporate home builder for three years immediately preceding the application; and () complete the Commission's 1 classroom hour broker in charge course either within three years prior to designation as a broker in charge or within days following designation as a broker in charge. Upon the request of the Commission, a broker shall provide evidence to the Commission that he or she possesses the requisite experience. A broker in charge designation shall be immediately terminated if a broker in charge fails to complete the broker in charge course during the required time period or if the Commission finds the broker in charge does not possess the required experience. A broker who is removed as broker in charge for failure to timely complete the Commission's 1 hour broker in charge course must first complete the 1 hour broker in charge course before he or she may again be designated as broker in charge. (h) By submission of a broker in charge designation request to the Commission, a broker certifies that he or she possesses the experience required to become a broker in charge and upon designation by the Commission, the broker shall be authorized to act as a broker in charge. Upon his or her designation as broker in charge and completion of the broker in charge course within the time period prescribed in Subparagraph (g)() of this Rule, the designated broker in charge acquires the eligibility to be re designated as a broker in charge at any time in the future after a period of not actively serving as a broker in charge without having to again satisfy the qualification requirements for initial designation stated in this Paragraph so long as the broker continuously satisfies the requirements to retain such eligibility described in Paragraph (k) of this Rule. (i) The broker in charge shall, in accordance with the requirements of G.S. A and the rules adopted by the Commission, assume the responsibility at his or her office for: (1) the retention of current license renewal pocket cards by all brokers employed at the office for which he or she is broker in charge; the display of licenses at such office in accordance with Rule.01 of this Section; and assuring that each broker employed at the office has complied with Rules.00,.00, and.00 of this Subchapter; of
1 1 1 1 1 1 1 1 0 1 0 1 () the notification to the Commission of any change of business address or trade name of the firm and the registration of any assumed business name adopted by the firm for its use; () the conduct of advertising by or in the name of the firm at such office; () the maintenance at such office of the trust or escrow account of the firm and the records pertaining thereto; () the retention and maintenance of records relating to transactions conducted by or on behalf of the firm at such office, including those required to be retained pursuant to Rule.0 of this Section; () the supervision of provisional brokers associated with or engaged on behalf of the firm at such office in accordance with the requirements of Rule.00 of this Subchapter; () the supervision of all brokers employed at the office for which he or she is broker in charge with respect to adherence to agency agreement and disclosure requirements. (j) A broker who was the broker in charge of a real estate office on April 1, 00, whose broker in charge declaration was received by the Commission prior to that date, and who completed the Commission's broker in charge course prior to April 1, 00 or within days following designation as a broker in charge, may continue to serve as a broker in charge thereafter until his or her eligibility to serve as a broker in charge is terminated as provided in Paragraph (l) of this Rule. (k) Once a broker has been designated as a broker in charge and completed the 1 hour broker in charge course as prescribed by Paragraph (g) of this Rule, the broker may maintain broker in charge eligibility by timely annual renewal of his or her broker license and completion each license year of the four hour mandatory continuing education update course for brokers in charge known as the "Broker In Charge Update Course" described in Rule E.0(b), and any Commission approved four hour continuing education elective course described in Rule E.00. The Broker In Charge Update Course shall be taken initially by a broker in charge during the first full license year following the license year in which the broker was designated as a broker in charge and each license year thereafter in order for the broker to maintain broker in charge eligibility. Enrollment in the Broker In Charge Update Course shall be limited exclusively to current brokers in charge, and brokers who are not currently acting as a broker in charge but who desire to retain their broker in charge eligibility. Only these brokers shall receive continuing education credit for taking the Broker In Charge Update Course. A broker in charge or broker who is broker in charge eligible who takes the General Update Course described in Rule. of this Subchapter rather than the Broker In Charge Update Course shall receive continuing education update course credit for taking such course only for the purpose of retaining his or her license on active status and shall not be considered to have satisfied the requirement to take the Broker In Charge Update Course in order to retain his or her broker in charge status or eligibility. (l) A broker's broker in charge eligibility and, if currently designated as a broker in charge, his or her broker in charge designation shall be terminated upon the occurrence of any of the following events: (1) the broker's license expires or the broker's license is suspended, revoked or surrendered; () the broker's license is made inactive for any reason; of
1 1 1 1 1 1 1 1 0 1 0 1 () the broker fails to complete the Broker In Charge Update Course described in Paragraph (k) of this Rule; or () the broker is found by the Commission to have not possessed the experience required in Paragraph (g) of this Rule at the time of either initial designation as a broker in charge or re designation as a broker in charge. (m) When a broker who is a former broker in charge desires to be re designated as a broker in charge following termination of his or her broker in charge designation or eligibility, he or she must first have a license on active status. The broker then must satisfy the experience requirements for initial designation set forth in Paragraph (g) of this Rule, and the broker must complete the 1 hour broker in charge course prior to re designation as broker in charge. (n) A broker in charge shall notify the Commission in writing that he or she no longer is serving as broker in charge of a particular office within days following any such change. (o) A non resident broker who has been designated by the Commission as the broker in charge of an office not located in North Carolina is not required to complete the broker in charge course or the Broker In Charge Update Course prescribed for brokers in charge under Paragraph (k) of this Rule. However, if such broker in charge either becomes a resident of North Carolina or becomes broker in charge of an office located within North Carolina, then he or she must take the 1 hour broker in charge course within days of such change, unless he or she has taken the 1 hour course within the preceding three years. Such broker in charge shall take the Broker In Charge Update Course prescribed in Paragraph (k) of this Rule during the first full license year following the change and each license year thereafter so long as the broker in charge remains a resident of North Carolina or continues to manage an office located in North Carolina. (p) A nonresident commercial real estate broker licensed under the provisions of Section.0 of this Subchapter shall not act as or serve in the capacity of a broker in charge of a firm or office in North Carolina. (a) Every real estate firm shall designate one BIC for its principal office and one BIC for each of its branch offices. No office of a firm shall have more than one designated BIC. A BIC shall not serve as BIC for more than one office unless each of those offices share the same physical office space and delivery address. (b) Every broker who is a sole proprietor shall designate himself or herself as a BIC if the broker: (1) engages in any transaction where the broker is required to deposit and maintain monies belonging to others in a trust account; () engages in advertising or promoting his or her services as a broker in any manner; or () has one or more other brokers affiliated with him or her in the real estate business. (c) A licensed real estate firm is not required to have a BIC if it: (1) is organized for the sole purpose of receiving compensation for brokerage services furnished by its qualifying broker through another firm or broker; () is treated for tax purposes as a Subchapter S corporation by the United States Internal Revenue Service; () has no principal or branch office; and of
1 1 1 1 1 1 1 1 0 1 0 1 () has no licensed person associated with it other than its qualifying broker. (d) A broker who maintains a trust or escrow account for the purpose of holding residential tenant security deposits received by the broker on properties owned by the broker in compliance with G.S. -0 shall not, standing alone, be required to be a BIC. (e) A broker seeking BIC Eligible status shall submit an application on a form available on the Commission s website. The BIC Eligible status form shall include the broker s: (1) name; () license number; () telephone number; () email address; () criminal history and history of occupational license disciplinary actions; () certification that: (A) his or her broker license is on active status; (B) the broker possesses at least two years of full-time or four years of part-time real estate brokerage experience within the previous five years or shall be a North Carolina licensed attorney with a practice that consisted primarily of handling real estate closings and related matters in North Carolina for three years immediately preceding application; and (C) the broker completed the 1-hour Broker-in-Charge Course no earlier than one year prior to application and no later than days after application; and () signature. (f) A broker who holds BIC Eligible status shall submit a form to become the designated BIC for a sole proprietor, real estate firm, or branch office. The BIC designation form shall include: (1) the broker s: (A) name; (B) license number; (C) telephone number; (D) email address; and (E) criminal history and history of occupational license disciplinary actions; and () the firm s: (A) name; and (B) license number, if applicable; (g) A designated BIC shall: (1) assure that each broker employed at the office has complied with Rules.00,.00, and.00 of this Subchapter; () notify the Commission of any change of firm s business address or trade name and the registration of any assumed business name adopted by the firm for its use; () be responsible for the conduct of advertising by or in the name of the firm at such office; of
1 1 1 1 1 1 1 1 0 1 0 1 () maintain the trust or escrow account of the firm and the records pertaining thereto; () retain and maintain records relating to transactions conducted by or on behalf of the firm, including those required to be retained pursuant to Rule.0 of this Section; () supervise provisional brokers associated with or engaged on behalf of the firm at such office in accordance with the requirements of Rule.00 of this Subchapter; () supervise all brokers employed at the office with respect to adherence to agency agreement and disclosure requirements; and () notify the Commission in writing that he or she is no longer serving as BIC of a particular office within days following any such change. (h) A broker holding BIC Eligible status shall take the Broker-in-Charge Update Course during the license year of designation, unless the broker has satisfied the requirements of Rule. of this Subchapter prior to designation. (i) A broker s BIC Eligible status shall terminate if the broker: (1) made any false statements or presented any false, incomplete, or incorrect information in connection with an application; () fails to complete the 1-hour Broker-in-Charge Course pursuant to Paragraph (e) of this Rule; () fails to renew his or her broker license pursuant to Rule.00 of this Subchapter, or the broker s license has been suspended, revoked, or surrendered; or () fails to complete the Broker-in-Charge Update Course and a four credit hour elective course pursuant to Rules. and.1 of this Subchapter, if applicable. (j) In order to regain BIC Eligible status after a broker s BIC Eligible status terminates, the broker shall complete the 1-hour Broker-in-Charge Course prior to application and then submit a BIC Eligible status form pursuant to Paragraph (e) of this Rule. (k) A nonresident commercial real estate broker licensed under the provisions of Section.0 of this Subchapter shall not act as or serve in the capacity of a broker-in-charge of a firm or office in North Carolina. History Note: Authority G.S. A-; A-(c); A-; A-.1; A.1(c)(); A.1(e); A-.; A- ; A (a); Eff. September 1, 1; Amended Eff. July 1, 01; July 1, 01; May 1, 01; July 1, 0; July 1, 00; January 1, 00; April 1, 00; July 1, 00; July 1, 00; April 1, 00; September 1, 00; July 1, 001; October 1, 000; August 1, 1; April 1, 1; July 1, 1; July 1, 1. of
1 1 1 1 1 1 1 1 0 1 0 1 1 NCAC A.0 is proposed for amendment as follows: 1 NCAC A.0 RESIDENTIAL PROPERTY AND OWNERS' ASSOCIATION DISCLOSURE STATEMENT (a) Every owner of real property subject to a transfer of the type governed by Chapter E of the General Statutes shall complete the following Residential Property and Owners' Association Disclosure Statement and furnish a copy of the complete statement to a purchaser buyer in accordance with the requirements of G.S. E-. The form shall bear the seal of the North Carolina Real Estate Commission and shall read as follows: [N.C. REAL ESTATE COMMISSION SEAL] STATE OF NORTH CAROLINA RESIDENTIAL PROPERTY AND OWNERS' ASSOCIATION DISCLOSURE STATEMENT Instructions to Property Owners 1. The Residential Property Disclosure Act (G.S. E) ("Disclosure Act") requires owners of residential real estate (single-family homes, individual condominiums, townhouses, and the like, and buildings with up to four dwelling units) to furnish purchasers buyers a Residential Property and Owners' Association Disclosure Statement ("Disclosure Statement"). This form is the only one approved for this purpose. A disclosure statement must be furnished in connection with the sale, exchange, option, and sale under a lease with option to purchase where the tenant does not occupy or intend to occupy the dwelling. A disclosure statement is not required for some transactions, including the first sale of a dwelling which has never been inhabited and transactions of residential property made pursuant to a lease with option to purchase where the lessee occupies or intends to occupy the dwelling. For a complete list of exemptions, see G.S. E-.. You must respond to each of the questions on the following pages of this form by filling in the requested information or by placing a check ( ) in the appropriate box. In responding to questions, you are only obligated to disclose information about which you have actual knowledge. a. If you check "Yes" for any question, you must explain your answer and either describe any problem or attach a report from an attorney, engineer, contractor, pest control operator or other expert or public agency describing it. If you attach a report, you will not be liable for any inaccurate or incomplete information contained in it so long as you were not grossly negligent in obtaining or transmitting the information. 1 of
1 1 1 1 1 1 1 1 0 1 b. If you check "No," you are stating that you have no actual knowledge of any problem. If you check "No" and you know there is a problem, you may be liable for making an intentional misstatement. c. If you check "No Representation," you are choosing not to disclose the conditions or characteristics of the property, even if you have actual knowledge of them or should have known of them. d. If you check "Yes" or "No" and something happens to the property to make your Disclosure Statement incorrect or inaccurate (for example, the roof begins to leak), you must promptly give the purchaser buyer a corrected Disclosure Statement or correct the problem.. If you are assisted in the sale of your property by a licensed real estate broker, you are still responsible for completing and delivering the Disclosure Statement to the purchasers; buyers; and the broker must disclose any material facts about your property which he or she knows or reasonably should know, regardless of your responses on the Statement.. You must give the completed Disclosure Statement to the purchaser buyer no later than the time the purchaser buyer makes an offer to purchase your property. If you do not, the purchaser buyer can, under certain conditions, cancel any resulting contract (See "Note to Purchasers" Buyers below). You should give the purchaser buyer a copy of the Disclosure Statement containing your signature and keep a copy signed by the purchaser buyer for your records. Note to Purchasers Buyers If the owner does not give you a Residential Property and Owners' Association Disclosure Statement by the time you make your offer to purchase the property, you may under certain conditions cancel any resulting contract without penalty to you as the purchaser. buyer. To cancel the contract, you must personally deliver or mail written notice of your decision to cancel to the owner or the owner's agent within three calendar days following your receipt of the Disclosure Statement, or three calendar days following the date of the contract, whichever occurs first. However, in no event does the Disclosure Act permit you to cancel a contract after settlement of the transaction or (in the case of a sale or exchange) after you have occupied the property, whichever occurs first.. In the space below, type or print in ink the address of the property (sufficient to identify it) and your name. Then sign and date. Property Address: of
Owner's Name(s): Owner(s) acknowledge(s) having examined this Disclosure Statement before signing and that all information is true and correct as of the date signed. Owner Signature: Date, Owner Signature: Date, Purchasers Buyers acknowledge receipt of a copy of this Disclosure Statement; that they have examined it before signing; that they understand that this is not a warranty by owners or owners' agents; that it is not a substitute for any inspections they may wish to obtain; and that the representations are made by the owners and not the owners' agents or subagents. Purchasers Buyers are strongly encouraged to obtain their own inspections from a licensed home inspector or other professional. As used herein, words in the plural include the singular, as appropriate. Purchaser Buyer Signature: Date, Purchaser Buyer Signature: Date, 1 1 Property Address/Description: The following questions address the characteristics and condition of the property identified above about which the owner has actual knowledge. Where the question refers to "dwelling," it is intended to refer to the dwelling unit, or units if more than one, to be conveyed with the property. The term "dwelling unit" refers to any structure intended for human habitation. No Repre- Yes No sentation 1. In what year was the dwelling constructed? Explain if necessary:. Is there any problem, malfunction or defect with the dwelling's foundation, slab, fireplaces/chimneys, floors, windows (including storm windows and screens), doors, ceilings, interior and exterior walls, attached garage, patio, deck or other structural components including any modifications to them? of
. The dwelling's exterior walls are made of what type of material? Brick Veneer Wood Stone Vinyl Synthetic Stucco Composition/Hardboard Concrete Fiber Cement Aluminum Asbestos Other (Check all that apply). In what year was the dwelling's roof covering installed? (Approximate if no records are available.) Explain if necessary:. Is there any leakage or other problem with the dwelling's roof?. Is there any water seepage, leakage, dampness or standing water in the dwelling's basement, crawl space, or slab?. Is there any problem, malfunction or defect with the dwelling's electrical system (outlets, wiring, panel, switches, fixtures, generator, etc.)?. Is there any problem, malfunction or defect with the dwelling's plumbing system (pipes, fixtures, water heater, etc.)?. Is there any problem, malfunction or defect with the dwelling's heating and/or air conditioning?. What is the dwelling's heat source? Furnace Heat Pump Baseboard Other (Check all that apply) Age of system:. What is the dwelling's cooling source? Central Forced Air Wall/Window Unit(s) Other (Check all that apply) Age of system: 1. What is the dwelling's fuel sources? Electricity Natural Gas Propane Oil Other (Check all that apply) If the fuel source is stored in a tank, identify whether the tank is above ground or below ground, and whether the tank is leased by seller or owned by seller. (Check all that apply) of
. What is the dwelling's water supply source? City/County Community System Private Well Shared Well Other (Check all that apply) 1. The dwelling's water pipes are made of what type of material? Copper Galvanized Plastic Polybutylene Other (Check all that apply) 1. Is there any problem, malfunction or defect with the dwelling's water supply (including water quality, quantity or water pressure)? 1. What is the dwelling's sewage disposal system? Septic Tank Septic Tank with Pump Septic Tank Septic Tank with Pump Community System Connected to City/County System City/County System available State Permitted System (fee and conditions apply) Straight pipe (wastewater does not go into a septic or other sewer system [note: use of this type of system violates State law]) Other (Check all that apply) 1. If the dwelling is serviced by a septic system, do you know how many bedrooms are allowed by the septic system permit? If your answer is "Yes," how many bedrooms are allowed? No records available. 1. Is there any problem, malfunction or defect with the dwelling's sewer and/or septic system? 1. Is there any problem, malfunction or defect with the dwelling's central vacuum, pool, hot tub, spa, attic fan, exhaust fan, ceiling fans, sump pump, irrigation system, TV cable wiring or satellite dish, garage door openers, gas logs, or other systems? 0. Is there any problem, malfunction or defect with any appliances that may be included in the conveyance (range/oven, attached microwave, hood/fan, dishwasher, disposal, etc.)? 1. Is there any problem with present infestation of the dwelling, or damage from past infestation of wood destroying insects or organisms which has not been repaired?. Is there any problem, malfunction or defect with the drainage, grading or soil stability of of
the property?. Are there any structural additions or other structural or mechanical changes to the dwelling(s) to be conveyed with the property?. Is the property to be conveyed in violation of any local zoning ordinances, restrictive covenants, or other land-use restrictions, or building codes (including the failure to obtain proper permits for room additions or other changes/improvements)?. Are there any hazardous or toxic substances, materials, or products (such as asbestos, formaldehyde, radon gas, methane gas, lead-based paint) which exceed government safety standards, any debris (whether buried or covered) or underground storage tanks, or any environmentally hazardous conditions (such as contaminated soil or water, or other environmental contamination) which affect the property?. Is there a radon mitigation system present in the dwelling?.. Is there any noise, odor, smoke, etc. from commercial, industrial or military sources which affects the property?.. Is the property subject to any utility or other easements, shared driveways, party walls or encroachments from or on adjacent property?.. Is the property subject to any lawsuits, foreclosures, bankruptcy, leases or rental agreements, judgments, tax liens, proposed assessments, mechanics' liens, materialmens' liens, or notices from any governmental agency that could affect title to the property?. 0. Is the property subject to a flood hazard or is the property located in a federallydesignated flood hazard area? 0. 1. Does the property abut or adjoin any private road(s) or street(s)? 1.. If there is a private road or street adjoining the property, is there in existence any owners' association or maintenance agreements dealing with the maintenance of the road or street? of
1 1 1 1 If you answered "yes" to any of the questions listed above (1 1) (1-) please explain (attach additional sheets if necessary): In lieu of providing a written explanation, you may attach a written report to this Disclosure Statement by a public agency, or by an attorney, engineer, land surveyor, geologist, pest control operator, contractor, home inspector, or other expert, dealing with matters within the scope of that public agency's functions or the expert's license or expertise. The following questions pertain to the property identified above, including the lot to be conveyed and any dwelling unit(s), sheds, detached garages, or other buildings located thereon. No Repre- Yes No sentation. Is the property subject to governing documents which impose various mandatory covenants, conditions, and restrictions upon the lot or unit? If you answered "yes" to the question above, please explain (attach additional sheets if necessary):.. To your knowledge, is Is the property subject to regulation by one or more owners' association(s) or governing documents which impose various mandatory covenants, conditions, and restrictions upon the lot, including, but not limited to to, obligations to pay regular assessment assessments or dues and special assessments? If your answer is "yes," please provide the information requested below as to each owners' association to which the property is subject [insert N/A into any blank that does not apply]: (specify name) whose regular assessments ("dues") are $ per. The name, address and telephone number of the president of the owners' association or the association manager are (specify name) whose regular of
assessments ("dues") are $ per. The name, address and telephone number of the president of the owners' association or the association manager are 1 * If you answered "Yes" to question above, you must complete the remainder of this Disclosure Statement. If you answered "No" or "No Representation" to question above, you do not need to answer the remaining questions on this Disclosure Statement. Skip to the bottom of the last page and initial and date the page. No Repre- Yes No sentation.. Are any fees charged by the association or by the association's management company in connection with the conveyance or transfer of the lot or property to a new owner? If your answer is "yes," please state the amount of the fees:.. As of the date this Disclosure Statement is signed, are there any dues, fees or special assessment which have been duly approved as required by the applicable declaration or by-laws, and that are payable to an association to which the lot is subject? If your answer is "yes," please state the nature and amount of the dues, fees or special assessments to which the property is subject:.. As of the date this Disclosure Statement is signed, are there any unsatisfied judgments against or pending lawsuits involving the property or lot to be conveyed? If your answer is "yes," please state the nature of each pending lawsuit and the amount of each unsatisfied judgment: of
.. As of the date this Disclosure Statement is signed, are there any unsatisfied judgments against or pending lawsuits involving the planned community or the association to which the property and lot are subject, with the exception of any action filed by the association for the collection of delinquent assessments on lots other than the property and lot to be conveyed? If your answer is "yes," please state the nature of each pending lawsuit and the amount of each unsatisfied judgment: 1..Which of the following services and amenities are paid for by the owners' association(s) identified above out of the association's regular assessments ("dues")? (Check all that apply.) No Repre- Yes No sentation Management Fees Exterior Building Maintenance of Property to be Conveyed Master Insurance Exterior Yard/Landscaping Maintenance of Lot to be Conveyed Common Areas Maintenance Trash Removal Recreational Amenity Maintenance (specify amenities covered) Pest Treatment/Extermination Street Lights Water Sewer Storm Water Management/Drainage/Ponds Internet Service Cable Private Road Maintenance Parking Area Maintenance Gate and/or Security Other: (specify) of
1 1 1 1 1 1 1 1 0 Owner Buyer Initials and Date Owner Initials and Date Purchaser Buyer Initials and Date Purchaser Owner Initials and Date (b) The form described in Paragraph (a) of this Rule may be reproduced, but the text of the form shall not be altered or amended in any way. (c) The form described in Paragraph (a) of this Rule as amended effective July 1, 01 July 1, 01, applies to all properties placed on the market on or after July 1, 01. July 1, 01. The form described in Paragraph (a) of this Rule as amended effective January 1, 01, July 1, 01, applies to all properties placed on the market prior to July 1, 01. July 1, 01. If a corrected disclosure statement required by G.S. E- is prepared on or after July 1, 01, July 1, 01, for a property placed on the market prior to July 1, 01, July 1, 01, the form described in Paragraph (a) of this Rule as amended effective July 1, 01, July 1, 01, shall be used. History Note: Authority G.S. E-(b); E-(b1); A-(c); A-; Eff. October 1, 1; Amended Eff. July 1, 01; July 1, 01; January 1, 01; January 1, 01; July 1, 0; July 1, 00; January 1, 00; July 1, 00; September 1, 00; July 1, 000. of
1 1 1 1 1 1 1 1 0 1 1 NCAC A.00 is proposed for amendment as follows: 1 NCAC A.00 LICENSE RENEWAL (a) All real estate licenses issued by the Commission under G.S. A, Article 1 shall expire on June 0 following issuance. Any broker desiring renewal of his or her license shall renew on the Commission's website within days prior to license expiration and shall submit a renewal fee of forty-five dollars ($.00). A broker who does not have the ability to renew online may renew by calling the Commission's office during normal business hours posted on the Commission's website. (b) During the renewal process, every individual broker shall provide an email address to be used by the Commission. The email address may be designated by the broker as private in order to be exempt from public records disclosures pursuant to G.S. A-(b). A broker who does not have an email address is not required to obtain an email address to comply with this Rule. (c) During the renewal process, every designated broker-in-charge shall disclose: (1) each federally insured depository institution lawfully doing business in this State where the trust account(s) for the broker-in-charge or the entity for which the broker-in-charge is designated is held, if applicable; and () any criminal conviction or occupational license disciplinary action that occurred within the previous year. History Note: Authority G.S. A-(c); A-; A-.1; A-; Eff. February 1, 1; Readopted Eff. September 0, 1; Amended Eff. July 1, 1; February 1, 11; February 1, 1; Temporary Amendment Eff. April, 1 for a period of days or until the permanent rule becomes effective, whichever is sooner; Amended Eff. July 1, 01; July 1, 01; July 1, 01; April 1, 01; April 1, 00; January 1, 00; July 1, 00; December, 00; April 1, 1; July 1, 1; August 1, 1. 1 of 1